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SIDBI Assistance to Export Oriented MSMEs under UBHARTE SITAARE PROGRAMME

  • 26-Apr-2022
SIDBI Assistance to Export Oriented MSMEs under UBHARTE SITAARE PROGRAMME

The finance minister of India has launched a new scheme known as SIDBI Assistance to Export Oriented MSMEs under the UBHARTE SITAARE PROGRAMME scheme on 21st August 2021 to help MSMEs. 


It provides financial assistance to the borrowers of SIDBI, for modernization, expansion, technology up-gradation, and diversification.  


The eligible Micro, Medium, Small, and Enterprises will be assisted with financial facilitation and consultancy at an attractive rate of interest. 


The objective of UBHARTE SITAARE Scheme 

The objective of the UBHARTE SITAARE PROGAMME is given below: -  

  • To provide support to the MSME units, which are not able to scale up their export operations because of the lack of funding, having export potential.
  • To determine and strengthen the firms to have differentiated firms, technology. Processes, and to build up the export business.
  • This scheme aims to identify and ease challenges that are faced by several enterprises.
  • To assist the existing exporters to expand their products and also focus on new export markets.


The key features of UBHARTE SITAARE SCHEME 

Listed below are the key features of the SIDBI Assistance to Export Oriented MSMEs under the UBHARTE SITAARE PROGRAMME. 

  • The SIDBI Assistance to Export Oriented MSMEs under the UBHARTE SITAARE PROGRAMME provides financial assistance in the form of Foreign Currency Term Loan (FCTL) and Term loans.
  • Under this scheme, the contribution of customers is limited to 20% & 30% for the greenfield units.
  • Small Industries and Development of India offers up to 25 bps performance/milestone linked interest to the eligible entities.
  • Technical assistance for equity support and mentorship support is also offered under the UBHARTE SITAARE PROGRAMME.
  • The assistance of SIDBI to export-oriented MSMEs under this scheme provides affordable ROI (Return on Investment) and the loan will be sanctioned quickly.

 Also read: - SIDBI Schemes - Features, Interest Rate, Steps to Apply for Loan


Eligible enterprises for UBHARTE SITAARE Scheme 
Entities that are eligible under the SIDBI Assistance to Export Oriented MSMEs under the UBHARTE SITAARE PROGRAMME are given below: - 

  • The target entities of SIDBI under UBHARTE SITAARE Scheme are units having unique products, technology, or processes.
  • The future export champions with great potential are eligible for this scheme.

Given below are the sectors of high export potential that are eligible for financial assistance under the UBHARTE SITAARE Scheme: -

  1. Automobiles
  2. Chemicals
  3. IT and ITeS
  4. Precision engineering
  5. Food processing
  6. Aerospace and Defense
  7. Pharmaceuticals
  8. Textiles and allied sectors


Eligibility criteria of the UBHARTE SITAARE Scheme 

The eligibility criteria for getting a loan under this scheme are listed below: -  

Eligibility criteria for new units  

  • The promoters who have enough experience in the planned line of business & extensive projected revenue from exports are eligible for UBHARTE SITAARE Scheme.

 Eligibility criteria for existing units  

  • Strong export-oriented small and medium companies with sufficient financials can apply for this scheme.
  • Standard norms apply (CMR, Due diligence checks, etc. / CIBIL)


Quantum of Assistance 

SIDBI offered Need-based financial assistance,  

  • A maximum of 80% of the project cost.
  • Joint funding with EXIM Bank is available under the UBHARTE SITAARE PROGRAMME.

As quoted above, SIDBI provides financial assistance in the form of FCTL and Term loans. 

Term loans are offered to Export-oriented MSMEs for diversification, modernization, expansion, technology up-gradation, machinery & equipment, and product R&D by investment in land and building. 


The interest rate of the UBHARTE SITAARE Scheme 

  • The rate of interest under the SIDBI Assistance to Export Oriented MSMEs under the UBHARTE SITAARE PROGRAMME is based on the MCLR of a bank, repo rate, as per internal rating.


Repayment period of UBHARTE SITAARE Scheme 

Small Industries and Development Bank of India provides a repayment schedule of up to 2 years under this scheme.  

Note: - The repayment period of the UBHARTE SITAARE Scheme might be extended up to 10 years.  


Documents required under the UBHARTE SITAARE PROGRAMME 

The documents required for the UBHARTE SITAARE PROGRAMME are listed below: - 

  • Proforma invoice of quotation (machinery).
  • Copy of trust deed, MOA (Memorandum of Association), and Partnership deed.
  • Documents of identity proof.
  • Financial statements for the previous 3 years.
  • KYC documents as per the guidelines of banks.
  • Statement of immovable directors and promotors.
  • Copy of lease agreement and rent.
  • Documents of existing power load.
  • Documents of address proof.
  • Copy of registration certificate of GST for the registered units.
  • Copy of UAM
  • Copy of consent to establish from Process Control Book.
  • Application filed for the requirement of additional power load.
  • Copy of sanction letters from other banks for the current banking agreement.
  • Information of loans provided by other banks, financial institutions, and NBFCs that are currently outstanding.


Scheme application procedure  

  • The eligible micro enterprises need to access the online application page of SIDBI to apply for the scheme.
  • The registration page will be displayed on their screen, click on the registration tab to register as a new user in SIDBI to get a loan.
  • The entities are required to provide information of enterprise phone number, name, total loan requirements, and email address.
  • After the completion of registration, the password and username will be given to the entity.
  • Then, log in to the portal and fill in a one-page application form.
  • After the verification of KYC documents and due diligence, the loan amount will be credited to their respective account within 48 hours.

Financeseva helps you to avail UBHARTE SITAARE Scheme at best rates and terms. 

Also read: - SIDBI and Google Partnership for Assistance to Micro Enterprises (SANGAM)


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